Streamlining Demand Fulfilment Chain In Construction Projects: The Case of a Pre-Engineered Steel Building Manufacturer

Purpose - The construction industry is known for the application of traditional production and project management methods. This paper overall aims to demonstrate that the adoption of Supply Chain Management (SCM) concepts in construction industry can lead to significant improvements of planning and control performance of construction projects. Methodology/Approach – Multiple construction projects of a pre-engineered steel building supplier are explored using a research approach that is based on the previous literature from construction industry, Critical Chain project management and SCM concepts. Findings – After detailed mapping of construction projects and processes, using the critical chain approach the case company’s supply chain was examined quantitatively and a solution was devised to improve its performance. The simulation studies of the new supply chain planning and control system demonstrated a productivity improvement of at least 7%. Research Limitations/implications – The paper investigated one company and the results are simulated. Findings are being implemented in an ERP and MRPII system. Practical implications – The results of this paper clearly verify the need for mind change among Pre Engineered and Structural Steel Building firms operating in the Middle-East. Supply chain management methods should be used to improve competitiveness. Originality of the Paper - This paper is one of the few research works on construction projects that combines the use of SCM concepts with other classical literature on project and production management.